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Australia Boosts Indo-Pacific Aid in Response to U.S. Cuts

The 2025-26 budget redirects over $100 million to regional health, climate, and humanitarian programs, while aid spending remains at a historic low as a percentage of national income.

FILE -Australia's Foreign Minister Penny Wong, left, waits to shake hands with Secretary of State Marco Rubio, at the State Department, Jan. 21, 2025, in Washington. (AP Photo/Jacquelyn Martin, File)
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A man in military uniform inside an aircraft stand in front of palettes carrying items labelled 'Australian Aid'.
Australia will shift $119 million of its foreign aid budget to the Pacific and Southeast Asia to fill the gaps in critical programs left by US aid cuts.

Overview

  • Australia's 2025-26 foreign aid budget increases to $5.1 billion, with $119 million reprioritized from multilateral institutions to direct aid in the Pacific and South-East Asia.
  • The government allocates $370 million over three years to address the Myanmar crisis and support Rohingya refugees in Bangladesh, filling gaps left by USAID cuts.
  • An $81 million package will fund health programs in the Indo-Pacific, including HIV, tuberculosis, and maternal health services impacted by U.S. funding reductions.
  • Three-quarters of Australia's foreign aid budget now targets the Indo-Pacific, marking the highest regional focus in four decades.
  • Aid groups welcome the regional focus but criticize the government for maintaining historically low aid spending at 0.18% of gross national income.